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With the expert panel on the zero-rated value-added tax items having submitted its report to National Treasury, labour has questioned whether the recommendations - once implemented - will benefit the poor.

In a statement, Congress of South African Trade Unions (Cosatu) parliamentary coordinator Matthew Parks overall welcomed the additional "basic necessities" to the list of zero-rated items, but said the federation was disappointed that the VAT hike was not scrapped.

Among the items recommended to be zero-rated were white bread, sanitary pads, nappies and school uniforms.

The panel also cautioned government to ensure that benefits are not "captured" by producers.

Troost said that Treasury might not accept all other items recommended as this could take a chunk - some R4bn - out of possible revenue raised, calling for a tough balancing act.

Troost said although the current list of items was a step in the right direction, he thought a bar of soap or candles might also make it onto the list, as these items are used by the poor.

Economist Gilad Isaacs of the Institute for Economic Justice commended the panel's detailed report. However, he said there was not enough clarity on how the 66 items proposed for the list were narrowed down to eight which were ultimately investigated.

The current list also focuses on benefiting the bottom 40%, which does not account for all of SA’s people who are classified as poor (55%), Isaacs explained.

Isaacs also expected the panel to make bolder proposals, but these to have been constrained by the current fiscal framework. "The measures suggested are quite restrained; they could have been bolder," he said.

He added that he would be reviewing the report in more detail and possibly providing input. The public has until August 31 to make further submissions to Treasury.